Importance of change in an organization

Written by lauren nelson
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Importance of change in an organization
As companies grow, change is part of the process. ("dancing" growth image by Jaroslav Machacek from

Famous singer/songwriter Bob Dylan once crooned, "The times, they are a-changin'." For many people these changes are inconvenient, as they require adaptation. However, when it comes to the health of companies, changes are incredibly important for a variety of reasons, especially if they want to keep chugging along.

Accommodation of Growth

As a company grows and expands, it takes on more projects, clients, production and work. While the structure that was in place prior to this growth may have been sufficient to keep operations going, growth can force a company to make structural changes to accommodate the new workload. For example, more people may need to be hired, which would result in a need for more managers and supervisors to coordinate the new worker's efforts. Without changes like these, an organisation could quickly become disorganised and overwhelmed.

Address Problems

As an organisation continues to operate and the environment it operates in continues to evolve, it may find out that one of the processes it's been relying on no longer works as effectively as it could. For example, a company that is repeatedly facing suits for sexual harassment may consider changing its training protocol to encompass sexual harassment protocol. Changes such as these can help address issues that continually complicate operations, and save money as time goes on.

Keep Up to Date

Another motivation for change in an organisation may be the need to keep up to date on market trends and technology. Technology is changing at an incredibly rapid pace, and a failure to keep up with it can have devastating effects. For example, a company that fails to update its assembly line may be beat out by a company that has newer technology, can produce more products at a quicker rate, and therefore offers a lower price.


While change may seem inconvenient in an organizational setting, the promotion of that change can not only benefit your company via the alterations made, but by the attention it brings to the organisation. Stores that advertise with signs that they are "under new management" may bring in new customers. Companies that change their pay and benefits structure may be able to hire more people, or attract job candidates of a higher calibre.

New Income Streams

A company takes a risk every time it introduces a new product or service to the market. However, these changes are also some of the only ways to develop new avenues for revenue generation. By making changes, expanding production or adding a new department to an office, you can diversify the sources of income for your company, helping the bottom line.

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